Term Plus: A Multi-Purpose Insurance Solution Barry Rubin Director, Business Development Individual Insurance Products

AGENDA Company History & Strength Market Conditions Understanding Term Plus Insurance SSQ’s Unique Extreme Disability Benefit Case Study Illustration Software

COMPANY HISTORY & STRENGTH In business since 1944 Over 2,200 employees Offices in 6 major Canadian cities Business volume of $3 billion $11 billion in assets under management Over 1 million insureds AM Best Credit Rating A-

TOP LIFE INSURER RANKINGS Carrier Market Share (%) 1 Great West Life 24.06 2 Manulife 17.78 3 Sun Life 17.60 4 Desjardins 7.09 5 Industrial Alliance 6.72 6 SSQ Financial Group 2.96

FINANCIAL STABILITY ROE 2013 2012 2011 2010 2009 2008 SSQ 10.2% 12.8% 11.3% 15.9% 13.8% Manulife 7.8% 0.2% (7.3%) 5.2% 1.8% Sun Life 6.5% 11.6% (2.2%) 3.4% 5.1% Great West Life 16.6% 15.3% 17.6% 14.8% 12.7% Industrial Alliance 12.6% 4.7% 11.9% 4.0%

IS THERE A NEED FOR A MULTI-PURPOSE PRODUCT? MARKET CONDITIONS IS THERE A NEED FOR A MULTI-PURPOSE PRODUCT?

WHAT THE NUMBERS TELL US Typical Canadian owed $27,348 in consumer debt at the start of 2016 *TransUnion This figure has jumped 2.7 percent in the past year and doesn’t include mortgage debt Canadians now have more of virtually all forms of debt, including credit card debt, instalment loans, car loans and personal lines of credit Canadians debt to income ratio sets new high at 171% *Statistics Canada It is no secret that Canadians are carrying debt. They are borrowing more, piling on consumer debt – credit cards, conventional bank loans, car loans and lines of credit. The average Canadian was carrying $27,131 in debt in the second quarter this year, up $200 from the January-to-March period. According to the Q2 2013 stats, Canadians owe just over $1.63 for every $1 in disposable income they earn in a year (stats canada) adding to more debt The aggregate debt-to-income ratio of Canadian households has trended upward over the past 30 years. Both mortgage and non-mortgage (consumer) credit have contributed to this increase (Bank of Canada Review 2011-2012) There are approximately 9.3 million homeowners in Canada, including about 5.55 million with mortgages. Source: Prudence Paying Off For Canadian Mortgage Borrowers - Spring 2010 (Canadian association of accredited mortgage professionals)

DID YOU KNOW THAT… In the event of premature death, 30% of families with dependent children admit they will have immediate trouble meeting everyday living expenses (LIMRA) 1 in 3 people, on average, will be disabled for 90 days or longer at least once before age 65 with average length of almost 3 years (CLHIA) Almost half of all Canadians (41% of females and 46% of males) will develop cancer in their lifetime and a quarter of all Canadians are expected to die of the disease. In the event of premature death, 30% of families with dependent children admit they will have immediate trouble meeting everyday living expenses (LIMRA, Canadian Families at Risk – Facts about Life 2007 & based upon CIA 86-92 Aggregate Table & 1985 Commissioner’s Disability Table A (Experience Table) 1 in 3 people, on average, will be disabled for 90 days or longer at least once before age 65 with average length of almost 3 years (CLHIA – A guide to disability Insurance – November 2012) According to Canadian Cancer society 2013: Almost half of all Canadians (41% of females and 46% of males) will develop cancer in their lifetime and a quarter of all Canadians are expected to die of the disease. The probability increased since 2002/2003 by 3% for each gender (2002/2003: 38% of Canadian women and 43% of Canadian men will develop cancer in their lifetime.)

ASK YOUR CLIENTS What would happen to your home in the event of: Premature Death Disability Critical Illness Diagnosis How long would you be able to cover your outstanding loan payments before you start experiencing financial difficulties?

THE SOLUTION…TERM PLUS! A flexible, comprehensive and competitive solution tailored to meet the personal and business protection needs of your clients. All-in-one solution offering coverage for Life, Disability and Critical Illness Great alternative to bank products Highly competitive pricing

ADVANTAGES OF TERM PLUS LIFE Available Terms – T10, T15, T20, T25, T30, T35 Face Amount Options Level Decreasing to 50% of initial amount Renewable every 5 years, after the initial term, up to age 85 Convertible Built-in Guaranteed Insurability Feature 25% of initial insurance amount (max $100,000) Up to age 60 Extreme Disability Benefit (EDB) included

TERM 10 vs TERM PLUS 10 RENEWALS Male, 45 Non-Smoker $1,000,000 Term 10 – $6,840 annual premium (years 11-20) Term Plus 10 – $5,250 annual premium (years 11-15) Annual savings $1,590

TOTAL DISABILITY RIDER Accident & Sickness No Financial Documents Needed Not an Income Replacement Benefit

TOTAL DISABILITY RIDER Ask your clients questions

ASK YOUR CLIENT Do you owe money on a monthly basis? Eligible Loans Mortgage loan Mortgage line of credit Personal loan Personal line of credit Loan for the purchase or lease of a vehicle Student loan Loan for investment purposes Farm loan Commercial loan Provide a monthly indemnity $300 to $3500 per month 1.5% of life amount

ASK YOUR CLIENT How much do you work per week? Eligibility Employed 21 hours or more per week, 8 months per year

ASK YOUR CLIENT What do you do for a living? List of Non-Insurable Occupations (software library) Stay-at-home-spouse or a spouse on parental leave Up to $1,000

BENEFIT PERIODS 2 or 5 year benefit can be changed to age 65 option (evidence required, attained age) Up to age 65 Benefit

WAITING PERIODS 2 or 5 year Benefit 90 days (none retroactive) 30 days – if disability occurs following an accident, hospitalization of min. 72 hrs or day surgery Up to age 65 Benefit Line of credit, vehicle lease: maximum 120 payments

TOTAL DISABILITY RIDER Assistance benefit Second medical opinion, medical referral, psychological assistance, legal assistance etc. Claims Proof of loan required at time of claim

TOTAL DISABILITY RIDER Guaranteed Insurability Benefit Increase proportional to life increase, exercised simultaneously Age 55 or less Monthly indemnity:1.5% of life amount, max. $3,500

NEEDS ANALYSIS YSIS

START CONVERSATION ABOUT CI Cancer is the leading cause of death in Canada and responsible for 30% of all deaths. (The Canadian Cancer Society) Cancer accounts for 68% of payouts for CI policies, followed by heart attacks at 13%. Significant decrease in CI sales in the industry since 2012.

WHY ARE WE NOT TALKING ABOUT CI? Poor field underwriting? Premiums are too high? Longer underwriting process? Family history? Want to first get prospect as client?

CRITICAL ILLNESS RIDER 3 covered illnesses: Cancer, Heart Attack and Stroke Lump sum Tax-Free Payment - $20,000 Offered on ALL life insurance products Issue ages – 18 to 60 End of coverage – age 85 Levelized premiums NO family history and longer underwriting times Assistance benefit

Male, 35, Non-Smoker $20,000 Critical Illness Benefit CRITICAL ILLNESS RIDER Male, 35, Non-Smoker $20,000 Critical Illness Benefit $94 per year guaranteed (expiry age 85) 50 years of protection .25 cents per day = $4700

YOU’RE PROBABLY WONDERING… How?!

Underwritten Standard Life Check box off at time of application TO BE APPROVED… Underwritten Standard Life Check box off at time of application

EXTREME DISABILITY BENEFIT Provides 50% of life insurance amount up to $250,000 At NO additional cost Offered on ALL individual life insurance products Unique to SSQ

EXTREME DISABILITY BENEFIT Extreme disability means the insured is affected by a medical condition that renders him or her in a state of total and irrecoverable disability (at least 6 months) as a result of which the insured cannot perform activities of daily living without a reasonable expectancy of recovery as determined by a physician

EXTREME DISABILITY BENEFIT Insured cannot perform four (4) out of the following six (6) activities of daily living : 1. Bathing - the ability to wash oneself in a bathtub, shower or by sponge bath, with or without the aid of equipment; 2. Dressing - the ability to put on and remove necessary clothing including braces, artificial limbs or other surgical appliances; 3. Toileting - the ability to get on and off the toilet and maintain personal hygiene; 4. Bladder and Bowel Incontinence - the ability to manage bowel and bladder function with or without protective undergarments or surgical appliances so that a reasonable level of hygiene is maintained; 5. Transferring - the ability to move in and out of a bed, chair or wheelchair, with or without the use of equipment; 6. Feeding - the ability to consume food or drink that already has been prepared and made available, with or without the use of adaptive utensils. Fund offering committee/Manager of managers:

CASE STUDY

BUT FIRST… More than double your commission on next sale Provide a married couple Life, Critical Illness and Disability Insurance They pay less than $5 per day

CASE STUDY Your prospects Scott, 29, and Cassie, 28, a young married couple purchasing their first home together ($425,000). Combined they have $25,000 in debt (student loans and a car loan). Both are working and have a combined income of $120,000 Their need To cover their mortgage To cover their debt

WHAT DID WE LEARN? YOUR CLIENTS Get coverage they need all for less than $5 per day Only spend 1.25% of total gross income YOU Easily start the conversation about LI / CI / DI Double your commission Additional benefits earn more in renewals than life

What happens if your new clients have a baby down the road? ONE MORE THOUGHT What happens if your new clients have a baby down the road? Simply add a Child Rider for just over $10 per month Provide $25,000 per child no matter how many kids they have Children have option to convert to permanent solution (max. $100,000)

ILLUSTRATION SOFTWARE Version 6.3 – Download at www.ssq.ca Anyone can download software Illustration tool Product library Insurance application Electronic application Financial needs analysis & investor profile

SSQ ONTARIO EAST SALES TEAM THANK YOU! SSQ ONTARIO EAST SALES TEAM Barry Rubin Sam Alves Director, Business Development Director, Business Development Individual Insurance Products Investment & Retirement 416-428-5060 416-949-3389 Barry.rubin@ssq.ca sam.alves@ssq.ca Safeena Silverman Business Development Associate 416-859-7174 Safeena.silverman@ssq.ca

SSQ.CA / BETTER SERVE YOU